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REPORT 


MDITION  & PROSPECTS 

OF 

lINCINNATI  & CHICAGO  R.  R. 


OCTOBER,  1854. 


CINCINNATI; 


PUBLISHED  BY  JOHN  D.  THORPE, 
74  WEST  FOURTH  STREET. 


f 


Digitized  by  the  Internet  Archive 
in  2017  with  funding  from 

University  of  Illinois  Urbana-Champaign  Alternates 


https://archive.org/details/reportofconditioOOcinc 


V 


^ S5'-^ 

C ASt  ' 

REPOKT. 

The  coHsolidation  of  the  Cincinnati  and  Chicago,  and  the  Cincin- 
nati, Logansport  and  Chicago  Railroad  Companies,  which  was  con- 
summated on  the  31st  August  last,  by  the  unanimous  vote  of  a large 
majority  of  the  stockholders  of  both  companies,  who  attended  the 
meeting  called  for  that  purpose,  has  so  changed  the  position  of  our 
affairs  as  to  render  necessary  a statement  of  the  condition  and  pros- 
pects of  the  consolidated  line. 

The  consolidated  company  has  assumed  the  corporate  name  of  the 
“ Cincinnati  and  Chicago  Railroad  Company,”  and  controls  the  line 
of  road  from  Cincinnati  to  Chicago  ; also  the  road  from  New  Castle 
to  Wabash,  and  from  Richmond  to  New  Castle. 


EXTENT  AND  TERMINI  OF  THE  ROAD. 

The  line  of  road  now  controlled  by  this  Company  extends  from 
Cincinnati  on  a direct  line  to  Chicago  a distance  of  255  miles.  Also 
from  Richmond,  Indiana,  to  New  Castle,  28  miles ; and  from  New 
Castle  to  Wabash,  in  Wabash  county,  Indiana,  68  miles,  making  an 
aggregate  of  351  miles.  We  have  then  the  main  line  from  Cincin- 
nati to  Chicago  connecting  the  two  cities  by  a road  of  uniform  guage, 
and  which  exceeds  the  actual  distance  by  a direct  line  but  five  miles. 
The  line  from  Wabash  to  New  Castle,  which  will  be  a valuable  tributary , 
bringing  upon  the  main  line,  the  travel  and  trade  of  an  exceedingly  rich 
and  productive  region  of  country,  and  by  its  connection  at  the  formei 
point  with  the  Wabash  and  Erie  Canal,  and  the  Wabash  Valley 
Railroad,  attract  a large  share  of  the  business  of  those  important 
works. 

The  line  from  New  Castle  to  Richmond,  connecting  at  the  latter 
point  with  the  Dayton  and  Western  and  the  Eaton  and  Hamilton 
I roads,  will  carry  the  business  from  both  divisions  of  the  road  north 

; of  Newcastle,  intended  for  all  the  central  and  eastern  portions  of  Ohio, 

^ and  the  local  business  south  of  Richmond. 


PRESENT  CONDITION  OF  THE  ROAD. 

From  Richmond  to  New  Castle,  28  miles,  the  road  is  finished  and 
in  operation,  and  trains  are  run  to  Cincinnati  by  a connection  with 


4 


the  Eaton  and  Hamilton,  and  the  Cincinnati,  Hamilton,  and  Dayton 
roads. 

From  New  Castle  to  Anderson,  22  miles,  the  road-bed  is  complet- 
ed, the  cross-ties  delivered,  the  iron  purchased,  and  is  now  being 
laid  down,  and  by  contract  is  to  be  completed,  ready  for  the  cars  by 
the  1st  day  of  November  next.  The  completion  of  this  division  of 
the  road  will  give  us  a continuous  line  of  finished  road  of  fifty  miles, 
connecting  at  Anderson  with  the  Indianapolis  and  Bellefontaine  road, 
and  with  the  Eaton  and  Hamilton  road  at  Richmond,  thus  making 
the  connection  complete  between  Cincinnati  and  the  Indianapolis  and 
Bellefontaine  road. 

From  Logansport  to  Kokomo,  22  miles,  the  grading  is  completed, 
the  cross-ties  delivered,  the  iron  purchased,  and  a contract  made  for 
putting  it  down  during  the  present  fall.  At  Kokomo  this  division  of 
the  road  will  connect  with  the  Peru  and  Indianapolis  road. 

Upon  the  central  division  from  Anderson  to  Kokomo,  36  miles, 
the  graduation  and  bridging  is  nearly  completed,  requiring  an  ex- 
penditure of  less  than  $40,000  to  prepare  it  for  the  iron.  This  divi- 
sion will  be  completed  next  spring,  and  we  shall  then  have  a contin- 
uous line  in  operation  of  108  miles.  From  Cambridge  city  to  New 
Castle,  13  miles,  the  graduation  and  bridging  is  finished,  the  cross- 
ties purchased  and  delivered,  and  the  road  bed  is  now  ready  for  the 
track. 

From  New  Castle  to  Muncie,  19  miles,  tbe  grading  is  finished,  with 
the  exception  of  a small  amount  of  work  on  three  or  four  sections. 

F rom  Cincinnati  to  Cambridge  city,  60  miles,  and  from  Muncie  to 
Wabash,  49  miles,  a large  amount  of  work  has  been  done,  and  nu- 
merous sections,  including  many  bridges  and  culverts  have  been 
completed.  The  whole  of  these  divisions  is  under  contract. 

From  Logansport  to  Chicago  but  a small  amount  of  work  has  been 
done.  As  the  country  over  which  this  division  of  the  road  passes  is 
quite  level,  the  work  is  very  light,  and  the  line  can  be  prepared  for 
the  iron  in  less  than  six  months. 


COST  OF  THE  ROAD. 

As  a large  portion  of  the  work  has  been  done  and  paid  for,  and  the 
residue  is  under  contract  at  specific  prices,  we  can  form  a fair  esti- 
mate of  its  cost,  without  relying  upon  mere  conjectural  estimates. 

The  division  from  Cincinnati  to  New  Castle  is  under  contract  for 
completion  in  running  order,  with  all  materials  to  be  furnished  by 


6 


the  contractors,  and  also  rolling  stock  to  the  amount  of  of  $150,000, 
for  $3,000,000 


From  Richmond  to  Logansport,  by  adding  to 
the  actual  cost  to  the  Company  of  what  has 
been  done,  the  specific  prices  for  which  the 
residue  is  under  contract,  and  we  have  as  the 

cost  of  that  division 1,955,000 

From  JSTew  Castle  to  Wabash 928,000 

From  Logansport  to  Chicago 1,632,000 

On  the  last  two  divisions  named  above,  the  work  is  very  light,  and 
the  estimate  given  will  fully  cover  the  cost. 

Add  for  right  of  way 100,000 

Depots,  Water  Stations,  &c 200,000 

Additional  rolling  stock 200,000 

Contingent  expenses 100,000 


Total $8,115,000 

Making  an  average  cost  of  $23,1 19  per  mile. 

There  has  been  expended  $2,080,438. 


RESOURCES  OF  THE  COMPANY. 

Cash  Stock  Unpaid $798,037 

Real  Estate  owned  by  Company,  and  held  by  un- 
encumbered titles  in  fee  simple $2,922,271 

$3,720,308 

This  amount  is  in  addition  to  the  stock  already  collected  and  ex- 
pended upon  the  work,  and  together  with  the  proceeds  of  such 
bonds  as  may  be  hereafter  sold,  will  be  applied  to  the  further  prose- 
cution of  the  work,  and  to  the  discharge  of  the  liabilities  of  the 
Company. 

The  real  estate,  above  specified,  consists  of  property  in  the  City 
of  Cincinnati  and  vicinity,  valuable  farms  and  unimproved  lands  in 
Ohio,  Indiana,  and  Illinois ; a large  portion  of  which  is  near  the  line 
of  the  road,  and  will  be  greatly  enhanced  in  value  by  its  comple- 
tion. It  has  all  been  taken  in  payment  of  stock  subscriptions,  and 
has  been  absolutely  conveyed  to  the  Company,  by  deeds  in  fee 
simple. 

A large  amount  of  real  estate  has  already  been  very  advantage- 
ously used  by  the  Company  in  the  prosecution  of  the  work,  by  sale, 


6 


by  payment  to  contractors,  by  exchange  for  necessary  materials,  and 
by  using  it  as  a basis  of  credit  to  raise  money.  It  is  proposed  to 
use  the  real  estate  still  owned  by  the  Company  in  the  same  manner. 


LIABILITIES. 


Unfunded  debts ^425, 1 25 

Income  Bonds  sold 12,000 

Real  Estate  Bonds  sold 369,000 

Debts  due  for  Iron  Rails 200,000 


$1,006,125 

The  unfunded  debt  will  be  discharged  by  the  collections  of  stock 
still  due,  in  cash,  and  by  the  sale  of  a portion  of  the  real  estate. 

The  debt  due  for  rails  is  expected  to  be  paid  by  the  proceeds  of 
Bonds,  to  be  secured  by  a mortgage  on  the  road. 

The  Real  Estate  Bonds  run  five  years,  and  will  be  paid  out  of  the 
real  estate  upon  which  they  are  based,  and  which  is  transferred  to 
trustees,  to  be  applied  to  that  purpose. 


BOND  ACCOUNT. 

Bonds  to  the  amount  of  $300,000  have  been  issued ; secured  by 
a mortgage  on  the  road  from  Richmond  to  New  Castle,  25  miles. 
These  Bonds  have  been  sold,  and  the  proceeds  applied  to  the  pur- 
chase of  the  iron  and  equipments  for  that  portion  of  the  road,  which 
is  completed.  They  create  a lien  upon  no  other  part  of  the  road. 

A further  issue  of  Bonds  has  been  made  of  250,000  pounds  ster- 
ling, payable  in  London,  in  thirty  years,  with  6 per  cent,  interest. 
These  estimated  at  $4.84  to  the  pound,  amount  to  $1,210,000. 
These  Bonds  are  secured  by  a mortgage  on  the  line  of  the  road  from 
Richmond  to  Logansport,  108  miles,  subject  to  the  prior  lien  of  the 
$300,000  of  Bonds,  secured  by  mortgage  on  the  road  from  Rich- 
mond to  New  Castle.  They  are,  therefore,  secured  by  a first  mor- 
gage  from  Logansport  to  New  Castle,  80  miles,  and  by  a second 
mortgage  from  New  Castle  to  Richmond,  28  miles. 

The  road  from  Cincinnati  to  Wabash,  143  miles,  and  from  Logans- 
port to  Chicago,  100  miles,  is  wholly  unencumbered  by  mortgage, 
and  will  be  mortgaged  to  secure  such  additional  Bonds  as  it  may 
become  necessary  to  issue. 


7 


Of  the  sterling  Bonds  above  specified,  £55,000  sterling,  equal  to 
^266,200,  have  been  sold,  and  the  remainder  are  still  held  by  the 
Company. 


SUMMARY. 


Estimated  cost  of  the  road $8,115,000 

Amount  expended 2,080,438 


Yet  to  be  expended 6,024,562 

Add  liabilities  for  unfunded  debts 425,125 

Debt  for  Iron  now  purchased * 200,000 


$6,649,687 

This  is  the  whole  amount  required  to  finish  and  fully  equip  the 
road,  and  pay  all  the  liabilities  of  the  Company.  The  question  now 
arises,  how  is  this  amount  to  be  paid  ? This  we  will  proceed  to 
answer.  In  the  construction  of  roads  in  this  country,  ^the  cost  of 
the  superstructure  and  equipment  has  uniformly  been  paid  for  by 
a sale  of  Bonds,  secured  by  a mortgage  on  the  road.  In  the  con- 
struction of  a large  number  of  roads,  not  only  has  the  super- 
structure and  equipment  been  paid  for  with  Bonds,  but  also  a large 
proportion  of  the  cost  of  the  road  bed. 

It  is  undoubtedly  true,  as  a general  proposition,  that  a road  well 
located  through  a productive  country,  with  favorable  termini,  and 
constructed  at  a reasonable  cost,  will  furnish  a safe  basis  of  credit 
to  the  extent  of  one-half  its  cost.  If  one-half  the  cost  is  furnished 
by  stockholders,  capitalists  may  safely  invest  in  Bonds  secured  by  a 
mortgage  on  the  road,  to  the  extent  of  the  other  half. 

Calculating  upon  this  basis,  we  can  safely  issue  Bonds  on  the  road, 
in  addition  to  those  already  issued,  to  the  amount  of  $2,547,500, 
which  would  make  the  whole  issue  of  Bonds  $4,057,500. 

Deduct  from  this  the  amount  of  Bonds  now  sold  $566,200,  and 
there  remains  $3,491,300,  as  the  amount  which  may  be  sold. 
Estimating  these  at  80  per  cent.,  and  they  would  produce  the 
sum  of . .$2,793,400 

Add  to  this  the  present  resources  of  the  Company, 

as  shown  above 3,720,308 

Making  a total  of $6,513,708 

Which  would  leave  a defiscit  of  but  $135,979  of  the  whole  amount 
necessary  to  pay  all  the  liabilities  of  the  Company,  and  to  fully  finish 
and  equip  the  road. 


8 


As  it  is  probable  that  all  the  real  estate  of  the  Company  will  not 
be  disposed  of  before  the  road  will  be  completed,  and  to  supply  the 
deficiency  of  means  exhibited  in  the  foregoing  statement,  we  propose 
to  take  additional  real  estate,  on  stock  subscriptions,  to  the  amount 
of  one  million  of  dollars. 

As  we  are  constantly  receiving  oflfers  of  real  estate,  we  entertain 
no  doubt  that  we  shall  be  able  to  procure  that  amount,  at  fair  prices, 
within  a short  time. 

The  value  of  real  estate  subscriptions,  as  a means  of  constructing 
a road,  has  been  fully  proved  by  experience.  In  all  the  Western 
States,  real  estate,  both  in  the  towns  and  country,  has  been  constantly 
increasing  in  value.  The  demand  for  lands  and  town  property,  in- 
creases in  proportion  with  the  increase  of  population.  The  property 
transferred  to  the  Company  in  payment  of  stock,  is  conveyed  by  ab- 
solute titles,  and  there  can  consequently  be  no  delinquency  of  stock- 
holders. With  the  existing  demand  for  property  of  this  character, 
there  can  be  no  doubt  of  the  ability  of  the  Company  to  convert  it 
into  means  to  construct  the  road.  A large  part  of  it  can  be  sold  to 
contractors,  in  payment  of  work.  Several  large  contracts  are  now 
made,  which  are  to  be  paid  by  the  Company  in  this  manner.  A 
portion  of  the  real  estate  can  be  sold  for  cash,  and  a portion  used  as 
a security  for  Bonds  to  run  for  a period  of  five  or  ten  years,  and 
which  will  be  ultimately  paid  by  a sale  of  the  property  upon  which 
they  are  based.  From  the  foregoing  statements,  we  think  it  will  be 
apparent  that  the  Company  already  possesses  sufficient  means  to  en- 
sure, beyond  doubt,  the  completion  of  the  road. 

An  important  inquiry  remains  to  be  answered.  “ Will  it  pay  ?” 
The  value  of  a public  work,  is  to  be  tested  by  the  benefits  it  will 
confer  upon  the  section  of  country  in  which  it  is  located,  and  the 
amount  of  profits  it  will  afford  upon  the  cost  of  its  construction. 
We  are  willing  that  the  Cincinnati  and  Chicago  Railroad  shall  be 
judged  by  either,  or  both  of  these  tests.  We  are  satisfied  that  a 
thorough  examination  will  satisfy  any  impartial  mind  that  it  posses- 
ses as  many  elements  of  strength  and  success,  as  any  road  in  the 
West. 

The  past  season  has  been  one  of  severe  pressure  upon  railroad 
interests.  It  has  become  to  some  extent  popular  to  denounce  the 
railroads  as  the  causes  of  the  commercial  embarrassments  and 

stringent  money  market,”  from  which  the  country  has  sufiered. 
Railroad  stocks  and  securities  have  been  forced  to  peremptory  sales, 
when  the  combined  influence  of  a want  of  confidence,  and  a scarcity 
of  money,  have  caused  them  to  be  sacrificed  at  figures  far  below 
their  intrinsic  value. 


9 


During  the  same  period  the  finished  roads  in  the  West  have 
steadily  increased  their  earnings,  and  have  fully  demonstrated  their 
ability  to  pay  dividends  upon  their  stock. 

There  may  have  been  some  roads  improvidently  commenced. 
Rival  lines  may  have  been  too  eagerly  pressed.  But  these  facts 
furnish  no  argument  against  the  policy  of  railroads  as  a system. 
The  railroads  of  the  West  have  already  added  to  the  wealth  of  the 
country  much  more  than  the  whole  cost  of  their  construction,  and 
have  proved  profitable  to  the  stockholders,  when  properly  located. 
We  might  with  as  much  propriety  denounce  the  erection  of  buildings 
in  Cincinnati,  or  the  general  improvement  of  the  country,  as  a waste 
of  capital,  as  to  denounce  the  construction  of  these  important  chan- 
nels of  communication,  so  essential  to  our  prosperity. 

The  construction  of  this  road,  is  a matter  of  essential  importance 
to  Cincinnati.  The  section  of  country  which  it  traverses,  furnishes 
more  trade  to  the  city,  and  purchases  more  goods  and  articles  of 
manufacture  here,  than  any  other  section  of  the  same  extent.  No 
section  of  country  will  be  more  benefitted  by  a road,  and  none  will 
furnish  a better  business  for  the  road,  in  proportion  to  its  cost. 

The  Ohio  and  Mississippi  Road  has  been  fostered  and  sustained 
by  Cincinnati,  because  it  will  furnish  a speedy  and  direct  communi- 
cation with  St.  Louis.  This  road  is  equally  entitled  to  the  encour- 
agement and  support  of  Cincinnati,  for  the  reason  that  a direct  and 
speedy  communication  with  Chicago,  is  no  less  important  than  with 
St.  Louis. 

We  will  now  present  our  estimate  of  the  business  and  profits  of 
the  road,  based  upon  the  actual  resources  of  the  line  of  country  it 
commands,  and  the  data,  which  the  most  ample  railroad  experience 
has  proved  to  be  reliable  : 

ESTIMATE  OF  BUSINESS  AND  PROFITS. 

In  estimating  the  future  business  and  profits  of  the  Cincinnati  and 
Chicago  Railroad,  it  is  important  to  bear  in  mind  that  the  valley  of 
the  North-West  is  in  rapid  growth,  and  no  part  of  it  has  yet  reached 
the  point  in  which  that  growth  becomes  slow  or  stationary,  as  in  old 
countries,  and  indeed  in  some  parts  of  the  United  States.  The  coun- 
ties in  Indiana  through  which  this  road  is  located  have  not  attained  a 
third  of  the  population  they  must  have  in  a very  few  years,  and  there 
will,  of  course,  be  a corresponding  increase  of  their  productions  and 
commerce.  By  a reference  to  the  reports  of  any  of  the  lines  of  road 
in  the  West  which  have  been  in  operation  for  a period  of  five  years  it 
will  be  seen  that  the  increase  in  every  department  of  their  business 


10 


lias  been  constant  and  rapid.  This  increase  must  continue  as  long 
as  the  population,  resources,  and  commerce  of  the  country  -which  is 
tributary  to  them  continues  to  increase. 

The  estimates  of  business  presented  in  this  report  are  based  upon 
the  present  population  and  resources  of  the  country  through  which 
the  road  passes,  without  making  any  allowance  for  their  increase. 
But  the  important  fact,  which  has  been  conclusively  proved  by  rail- 
way experience  in  the  West,  that  the  business  will  be  doubled  by  the 
growth  of  the  country  in  a period  of  seven  years,  must  conclusively 
counterbalance'  the  apprehension  that  the  increased  or  supplemental 
expenditures  of  construction  and  improvement  will  become  a draw- 
back on  their  anticipated  profits. 

With  these  preliminary  remarks,  we  proceed  to  review  the  re- 
sources and  anticipated  business  of  the  Cincinnati  and  Chicago  rail- 
road, based  on  the  present  condition  and  production  of  the  belt  of 
country  which  will  sustain  it. 

The  following  table  presents  the  territory  and  population  properly 
connected  with  this  road : 


I.  TABLE  OF  POPULATION  AND  DENSITY. 


COUNTIES. 
Cincinnati, . • 

POPULATION. 

170,000 

SQUARE  MILES. 

DENSITY. 

^ Hamilton  • • • 

14,000 

100 

140 

Butler 

* .**  13,000 

133 

75 

\ F ranklin  • • • 

200 

58 

-J-  Union 

^ Fayette*  • • • 

4,513 

90 

50 

*.**  6,641 

113 

57 

Wayne*  * * * 

16,458 

200 

82 

" Henry 

Madison  * * • - 

*.**  22,886 

360 

63 

340 

44 

Tipton  * * * * 

* * * * 7,064 

300 

23 

Howard  • * * 

300 

31 

Cass 

* .*  14,327 

350 

41 

Pulaski  * • * 

*...  5,190 

400 

12 

Stark 

380 

U 

Porter 

350 

22 

Lake 

400 

14f 

Cook,  111*  * * 
Chicago*  * * < 

5,133 

68,000 

450 

Hi 

Delaware  Co.,  la.  14,095 

440 

32 

Grant 

350 

41 

Wabash  • * * 

* * * * 15,779 

330 

44^ 

^ Miami 

170 

42“ 

" Huntington 

7,850 

375 

20 

Blackford  • * 

170 

18 

462,075 

6,301 

73 

11 


IL  TABLE  OF  PRODUCTION. 


COUNTIES. 

CORN. 

WHEAT. 

CATTLE. 

, HOGS. 

SHEEP. 

Hamilton  • • 

428,246  bush  30,978  bush  4,325 

9,623 

2,116 

J Butler 

970,508 

iC 

107,660 

it 

5,517 

21,270 

4,577 

Franklin*  • • 

601,289 

(C 

74,573 

ii 

8,178 

22,611 

7,549 

^ Union 

362,121 

<( 

33,945 

ii 

3,544 

18,540 

4,942 

-J-  Fayette*  * * • 

520,002 

56,081 

“ 

5,604 

21,144 

7,758 

^ Wayne  * * * * 

839,073 

98,200 

ii 

9,897 

33,265 

15,927 

Henry*  * * * 

1,222,054 

t( 

168,093 

ii 

13,470 

47,264 

29,654 

Madison  * * * 

1,164,562 

139,727 

ii 

19,852 

47,998 

20,528 

Tipton 

455,883 

25,461 

ii 

7,102 

18,116 

4,760 

Howard*  * • 

597,732 

<€ 

69,825 

ii 

9,196 

26,790 

7,630 

Cass 

994,787 

a 

214,782 

it 

17,299 

35,440 

14,074 

Pulaski*  • * • 

291,830 

82,779 

ii 

10,167 

8,842 

3,300 

Stark 

22,340 

6,316 

ii 

1,278 

2,868 

711 

Porter 

411,310 

a 

141,504 

ii 

13,548 

13,800 

12,102 

Lake 

276,080 

<c 

72,778 

ii 

16,352 

11,342 

9,068 

Delaware  • • 

* 558,682 

a 

71,601 

ii 

7,871 

31,513 

20,664 

Grant 

469,713 

a 

118,249 

ii 

10,333 

16,885 

11,052 

Wabash 

665,450 

<c 

153,143 

ii 

10,686 

23,311 

8,677 

^ Miami 

. 337,613 

a 

74,363 

ii 

4,318 

12,516 

5,074 

Huntington* 

• 281,024 

99,775 

ii 

5,240 

14,675 

5,610 

Blackford  * • 

100,600 

<( 

27,393 

ii 

2,717 

5,755 

3,467 

Aggregates  • 1 1,470,799 

1,867,226 

ii 

186,494 

443,868 

199,185 

Surpluses. — Looking  at  the  consumption  of  the  people  on  the 
line  of  the  road,  the  probable  amount  of  the  above  products  for  ex- 
portation, and  which  can  only  find  a market  through  this  road,  are  as 


follows,  viz.  : 

■J  Cattle 62,231 

:JHogs 147,966 

Wheat,  deducting  7 bushels  for  consumption  of  each 

person 298,736  bus. 

i of  Corn 2,867,699  bus, 

\ 


By  comparing  this  estimate  with  the  amount  of  business  actually 
done  by  roads  which  have  been  in  operation  several  years,  and  which? 
are  not  more  favorably  located  for  business  of  this  character  than  the 
Cincinnati  and  Chicago  Road,  it  will  appear  that  the  estimate  is  much 
below  the  amount  which  will  be  carried  on  the  road.  The  following 


12 


are  the  amounts  of  Hogs,  Wheat,  and  Corn  carried  on  the  roads 
named : 


HOGS. 

34  092 

Eaton  and  Hamilton 

1 XllXXt^O  1 

(45  miles) 

74^886 

Madison  and  Indianapolis  (86  miles) 

Aggregate 

215  “ 

290,308 

Average 

1 ‘‘ 

1,350 

CORN  AND  WHEAT,  MANUFACTURED  AND  UNMANUFACTURED. 

Little  Miami  Railroad 

(84  miles' 

) 1,743,252  bush. 

Eaton  and  Hamilton 

(45  miles  ^ 

Madison  and  Indianapolis 

(86  miles^ 

Aggregate 

215 

4,498,174  bush. 

At  these  proportions,  the  Cincinnati  and  Chicago  Railroad  would 
carry  as  follows : 

Hogs 472,500 

Corn  and  Wheat,  in  bushels 7,325,350 

Being  much  more  than  double  the  amount  we  have  estimated  to 
the  Cincinnati  and  Chicago  road.  The  roads  above  enumerated  have 
been  running  several  years,  and  have  therefore  had  the  advantage  of  in- 
creased, business  which  a finished  road  in  this  country  always  attracts, 
while  the  estimates  for  the  Cincinnati  and  Chicago  road  are  based 
only  upon  the  present  actual  production  of  a given  district  on  the 
line  of  the  road. 

But  it  is  evident  from  this  comparison,  that  our  estimate  is  at  least 
within  the  limits  of  what  the  road  will  do. 

The  estimate  of  Groceries,  Merchandize,  Salt,  Iron,  Coal,  and  Sun- 
dries, is  based  upon  the  amount  of  transportation  of  similar  articles 
upon  roads  not  so  favorably  located  for  business  of  this  character  as 
the  Cincinnati  and  Chicago  road. 

This  calculation  gives  us  the  following  amount  of  way  freights  over 


this  road,  to  wit : 

Cattle,  in  tons 18,678  tons. 

Hogs,  “ 16,896  “ 

Grain,  “ 94,523  “ 

Coffee,  5,278 

Sugar,  “ 12,093  “ 

Molasses,  “ 6,748  “ 

Merch’dz  “ 34,146  “ 

Sundries,  44,000  “ 

Salt,  “ 7,844 

Coal,  “ , 8,000  “ 

Iron  and  Iron  Manufactures, 14,440  “ 


Aggregate  tons 262,646 


13 


THROUGH  FREIGHTS. 

Of  the  through  freights  between  Chicago  and  Cincinnati,  lumber 
would  constitute  an  important  item.  Chicago  is  well  known  as  the 
great  lumber  depot  of  the  Lakes.  Several  of  the  Railroads  entering 
that  city  pass  through  vast  forests  of  white  pine.  From  this  source 
Cincinnati  can  be  supplied  through  a direct  line  of  railroad,  requiring 
no  trans-shipment,  at  a less  price  than  is  now  paid  for  lumber  by  the 
Ohio  river.  The  extent  and  variety  of  manufactures  now  success- 
fully prosecuted  at  Cincinnati,  would  also  open  to  the  road  a large 
source  of  revenue,  in  their  transportation  to  Chicago,  where  an  ex- 
tended market  for  them  must  be  found.  For  through  freights  $200,- 
000  must  be  regarded  as  a low  estimate. 


WAY  PASSENGERS. 

In  order  to  estimate  the  number  of  way  passengers  upon  the  basis 
of  actual  experience  in  Western  railroads,  the  following  table  has  been 
constructed  from  the  reports  of  five  different  railroads  in  this  vicinity. 
This  table  shows  the  density  of  population,  the  number  of  passengers 
per  square  mile,  and  from  these  the  ratio  of  passengers  supplied 
by  any  given  population  in  proportion  to  its  density.  This  be- 
ing based  upon  the  actual  amount  of  travel  of  the  same  people,  in  the 
same  section  of  country,  must  afford  a satisfactory  test.  The  esti- 
mate based  upon  such  data  is  more  likely  to  be  under  than  over  the 
true  amount,  as  with  the  increase  of  railway  facilities,  the  locomo- 
tive habits  of  the  people  increase,  and  there  is  a consequent  increase  of 
passengers  from  the  same  section  of  country. 


III. — Table  of  Way  Passengers  to  a Given  Density  of  Population. 


Road. 

Miles. 

Pa'sengers 
per  lineal 
mile. 

Square 

Miles. 

Popula- 

tion. 

Den 

sity. 

Way 

Pass’geri. 

Pass’ngers 
per  square 
mile. 

Ratio  of 
pasg’r  per 
density. 

L.  Miami  Railroad. . 

84 

1,810 

2,520 

254,331 

100 

152,138 

60 

.60 

Cin.,  Ham.  &.  Day.  R. 

60 

3,P00 

1 800 

250,744 

140 

160,000 

100 

.71 

Madison  and  la.  R.. 

86 

900 

2,580 

75,000 

29 

75,000 

29 

1.00 

Eaton  & Hamilton  R. 

43 

1,627 

1,200 

30,000 

30 

70  000 

58 

1.93 

Columbus  (Sc  Xenia  K. 

54 

765 

1,620 

40,000 

25 

35,548 

21 

.84 

' Aggregates... 

327 

1,568 

9,720 

656,075 

66 

512,686 

52 

.80 

The  foregoing  table  proves  that  the  number  of  way  passengers  is 
in  proportion  to  the  density  of  population,  or  at  least  so  nearly  so 
as  to  form  a reliable  basis  for  an  estimate  of  business.  The  density 
of  population  being  constantly  increasing  with  the  cultivation  and  de- 
velopment of  the  resources  of  the  country,  and  the  general  prosperity 


14 


of  the  people,  until  the  country  is  well  filled,  there  must  be  a con- 
stant increase  of  way  travel.  In  that  part  of  the  country  embraced 
in  the  operations  of  the  Cincinnati  and  Chicago  Railroad,  the  popula- 
tion in  the  next  twenty  years  will  be  increased  three  or  four  fold. 
Hence  in  all  that  time  the  business  of  the  road  must  be  increasing. 

The  population  contained  in  the  belt  of  country  tributary  to  this 
road,  is  462,135,  embraced  in  a territory  of  6,301  square  miles,  with 
a density  of  73  to  the  square  mile. 

This  population,  based  upon  the  principles  of  the  foregoing  table, 
would  give  397,684  way  passengers. 

Lateral  Business. — The  business  thrown  upon  trunk  roads  by 
the  intersection  of  lateral  roads,  is  an  important  source  of  revenue. 

Since  the  opening  of  the  Indiana  Central  and  the  Indianapolis  and 
Bellefontaine  Roads,  it  is  ascertained  that  a very  large  portion  of  the 
business  arriving  from  the  West,  at  Richmond,  (Indiana)  and  Union, 
takes  its  way  to  Cincinnati,  viz.,  the  Eaton  and  Hamilton,  and  the 
Greenville  roads.  A large  share  of  both  passengers  and  freights 
coming  from  the  West  on  Eastern  lines,  takes  the  first  direct  south- 
east route  to  Cincinnati.  This  traffic,  already  very  large,  will  be  con- 
stantly increasing.  ^ 

The  Cincinnati  and  Chicago  Road  is  almost  a straight  line 
North-West  from  Cincinnati,  and  is  intersected  by  a number  of 
Eastern  roads,  which  will  bring  upon  it  a large  amount  of  lateral 
business.  It  is  intersected  by  the  following  lines  : 

1.  Junction  Road,  near  Brownsville. 

2.  Indiana  Central,  at  Cambridge  City. 

3.  Indianapolis  and  Bellefontaine,  at  Anderson. 

4.  Indianapolis  and  Peru,  at  Kokomo. 

5.  Logansport  and  Pacific,  at  Logansport. 

6.  Wabash  Valley  Road,  at  “ 

7.  Eel  River  Valley  Road,  at  “ 

8.  New  Albany  and  Salem. 

9.  Fort  Wayne  and  Chicago. 

These  intersections  are  on  the  main  line  to  Chicago. 

The  Branch  to  Wabash  intersects — 

1.  Indianapolis  and  Bellefontaine,  at  Muncie. 

2.  Fort  Wayne  and  Southern,  at  “ 

3.  Marion  and  Union,  at  Marion. 

4.  Wabash  Valley  Road,  at  Wabash. 

The  Cincinnati  and  Chicago  Road,  in  connection  with  the  Indi- 
ana Central,  from  Cambridge  City  west,  will  be  as  short  and 


16 


direct  a route  between  Indianapolis  and  Cincinnati,  as  any  con- 
structed or  in  progress. 

The  Indiana  Central  Road  is  now  carrying  a full  share  (perhaps 
one-half)  of  all  the  travel  between  Cincinnati  and  Indianapolis, 
transferring  it  to  the  Eaton  and  Hamilton  Road,  at  Richmond.  The 
Cincinnati  and  Chicago  Road  intersects  the  Indiana  Central,  six- 
teen miles  west  of  Richmond — while  the  distance  from  Cincinnati 
to  Cambridge,  is  ten  miles  less  than  from  Cincinnati  to  Richmond. 
This  makes  the  route  to  Indianapolis  twenty-six  miles  shorter  by 
Cambridge,  than  the  present  route  by  Eaton  and  Richmond.  It 
is  reasonable  then  to  presume  that  the  number  of  passengers  which 
will  be  received  by  the  Cincinnati  and  Chicago  Road  from  the 
Indiana  Central,  wull  be  much  larger  than  the  number  now  re- 
ceived from  the  same  road  by  the  Eaton  and  Hamilton,  inasmuch 
as  shortening  the  distance  between  Cincinnati  and  Indianapolis,  will 
attract  an  increased  amount  of  travel  over  this  route  between  the 
two  cities.  The  number  of  passengers  from  Indianapolis  to  Cin- 
cinnati, which  now  pass  over  the  Central  Road,  and  transfer  to  the 
Eaton  Road  at  Richmond,  is  at  least  equal  to  fifty  per  day.  At 
least  twenty-five  more  per  day  pass  from  the  Central  to  the  Eaton 
Road  at  Richmond,  who  take  the  cars  on  the  former  road  at  points 
between  Indianapolis  and  Richmond.  From  these  facts  we  may 
infer  that  the  lateral  passengers  which  will  be  received  from  the 
Central  Road,  will  be  equal  to  at  least  seventy-five  per  day. 

The  Logansport  and  Pacific  Road  extends  from  Logansport  West 
to  Burlington,  Iowa,  on  the  Mississppi  river.  Contracts  have  already 
been  made  for  running  that  road  in  connection  with  ours.  The  two 
roads  will  make  a direct  line  from  Burlington  to  Cincinnati.  As 
Burlington  is  the  depot  of  trade  for  a large  portion  of  the  upper  Mis- 
sissippi country,  and  of  the  interior  of  Iowa,  this  connection  must 
bring  upon  our  road  an  amount  of  business  far  exceeding  our  pres- 
ent estimate  of  lateral  business  from  any  one  line.  Without,  how- 
ever, going  into  a detailed  estimate  of  the  amount  of  business  to  be 
received  from  each  road,  as  we  have  not  the  same  data  upon  which 
to  base  our  estimates  in  relation  to  the  others,  which  we  have  in  re- 
gard to  the  Indiana  Central,  we  will  put  the  number  of  passengers 
which  may  be  received  from  the  other  roads  intersected,  at  thirty  per 
day  for  each  road  crossed,  and  we  have  an  aggregate  of  one  hundred  and 
thirty-six  thousand,  one  hundred  and  fifty  five  passengers  per  year 
from  lateral  roads.  From  the  same  source  will  be  received  a large 
amount  of  lateral  freight.  These  may  be  estimated  at  260  tons  per 
day,  making  an  aggregate  of  81,380  tons  per  year. 


16 


Through  Business. — By  reference  to  the  map,  it  will  be  seen  that 
Cincinnati  can  have  but  six  through  trunk  line  routes,  viz:  OneSouth,  one 
West,  one  North-West,  two  North,  and  North-East,  and  one  East. 
Other  routes  must  cross  these,  or  connect  with  them.  The  one  West 
(Ohio  and  Mississippi)  connects  Cincinnati  and  St  Louis,  and  be- 
tween that  and  those  North,  there  can  be  no  trunk  line  from  Cincin- 
nati, but  that  to  Chicago.  This  road  is  on  a direct  and  straight  line 
to  Chicago.  It  is  therefore  one  of  the  trunk  radial  lines. 

The  distance  between  Cincinnati  and  Chicago,  by  this  road,  is  255 
miles.  The  run  can  be  readily  made  in  from  eight  to  nine  hours. 

The  nearest  route  now  connecting  the  two  cities,  is  332  miles,  being 
seventy  seven  miles  longer  than  the  Cincinnati  and  Chicago  road, 
and  requires  a passage  over  five  different  roads  of  different  guages, 
rendering  transhipment  indispensible.  No  other  route  is  projected  or 
contemplated  which  will  lessen  this  difference.  This  road  can  there- 
fore have  no  rival  or  competition,  for  the  through  business,  between 
Cincinnati  and  Chicago.  It  would  be  idle  to  suppose  that  a route 
seventy-seven  miles  longer,  and  requiring  transhipment,  could  be  a 
competitor.  Capitalists  who  may  invest  their  means  in  this  enter- 
prize,  can  entertain  no  apprehension  that  their  investment  will  be  di- 
minished in  value  by  the  construction  of  a rival  road.  To  make  a 
shorter  line  would  be  impossible,  and  a rival  could  only  be  constructed 
by  building  another  road  alongside  of  this,  the  whole  distance  from 
Cincinnati  to  Chicago.  It  needs  no  argument  to  prove  that  this  will 
not  be  attempted. 

This  line  of  road  possesses  extraordinary  advantages  in  its  exemp- 
tion from  competition,  and  this  united  to  the  importance  of  its  termini 
and  the  extreme  fertility  of  the  country  through  which  it  passes,  must 
give  it  a pre-eminent  standing  among  the  first  class  of  trunk  roads  in 
the  West. 

The  Railroad  from  Charleston,  South  Carolina,  to  Cincinnati,  is 
now  so  far  advanced,  and  such  measures  have  been  taken  to  secure 
its  completioji,  as  can  leave  no  doubt  ot  its  success.  The  completion 
of  this  important  line  of  road  will  effect  a revolution  in  the  trade  of 
the  West,  and  will  vindicate  the  sagacity  of  Mr.  Calhoun  and  other 
statesmen  of  the  Souih,  who  more  than  twenty  years  ago,  urged  its 
completion  as  a measure  of  vast  importance  to  both  the  West  and  the 
South.  The  distance  from  Chicago  to  Charleston,  will  be  as  follows: 


Chicago  to  Cincinnati 265  miles. 

Cincinnati  to  Knoxville,  Tenn. 250  “ 

Knoxville  to  Charleston,  via  Blue  Ridge  R.  R.*  *370  “ 


Chicago  to  Charleston,  South  Carolina 875 


17 


While  the  distance  from  Chicago  to  New  York,  by  way  of  the 
Lake  kShore  and  the  New  York  and  Erie  roads,  (the  shortest  route) 
is  965  miles. 

The  grain  and  provisions  of  the  West  are  now  carried  to  New  York, 
to  be  re-shipped  to  Charleston  and  other  Southern  ports,  for  consump- 
tion there.  It  is  not  shipped  to  the  South  direct  to  the  West,  because 
there  is  no  direct  communication,  and  Charleston  can  only  be  reached 
with  freights,  by  way  of  New  York  and  New  Orleans.  When  a 
continuous  line  of  railroad  shall  extend  from  Chicago  to  Charleston, 
a barrel  of  pork  or  flour  can  be  carried  from  Chicago  to  Charleston? 
as  cheap  as  from  Chicago  to  New  York,  by  railroad. 

Is  it  not  reasonable  then  to  suppose,  that  a large  proportion  of  the 
produce  now  sent  from  Chicago  to  New  York,  will  be  sent  through 
Cincinnati  to  the  South  direct.  This  road  is  not  to  be  regarded  then 
as  a road  from  Cincinnati  to  Chicago  merely,  but  as  an  important  link 
in  a great  chain  of  roads,  connecting  the  extensive  and  fertile  region 
of  Lake  Michigan,  with  its  vast  net-work  of  railroads,  and  the  South- 
ern Atlantic. 

The  number  of  through  passengers  now  passing  between  Cincin- 
nati and  Chicago,  is  ascertained  to  be  about  seventy-five  per  day 
each  way,  upon  through  tickets,  but  as  there  is  no  direct  line  and 
the  travel  is  diffused  over  several  routes,  many  passengers  paying 
upon  the  several  roads  over  which  they  pass,  without  purchasing 
through  tickets,  the  full  number  can  not  be  ascertained.  The 
through  travel  between  the  two  cities,  is  this  year  more  than  double 
that  of  last  year,  and  the  increase  of  this  business  must  continue  to 
be  large.  In  making  an  estimate  of  the  through  passengers,  we 
have  estimated  125  per  day  each  way,  which  experience  will  certainly 
show  is  below  the  number  which  will  be  carried.  An  increase  in  the 
next  year,  equal  to  that  of  the  present  year,  over  the  past,  would 
make  the  number  of  through  passengers  then,  nearly  double  the 
number  we  have  estimated. 


SUMMARY  OF  BUSINESS  AND  PROFITS. 

Having  presented  the  data  upon  which  our  estimates  of  business, 
are  based,  it  only  remains  to  carry  out  their  results. 

1.  Of  way  Fkeights. — The  number  of  tons  we  have  estimated  at 
262,646.  Estimating  the  average  distance  of  transportation  at  100 
miles,  and  charging  them  at  two  and  a half  cents  per  ton  per  miles 
the  result  is  an  aggregate  of  ^656,6 15. 

2 


18 


2.  Of  through  Freights.— -This  we  have  estimated  at  ^200,000. 

3.  Way  Passengers. — These  we  have  estimated  above,  at  397,- 
604.  Equating  the  distance  on  which  they  are  carried  at  eighty 
miles,  which  is  less  than  experience  has  shown  the  average  to  be,  for 
such  a length  of  road,  and  fixing  the  price  at  two  and  a half  cents  per 
mile,  and  we  have  as  the  result,  ^796,168. 

4.  Through  Passengers. — These  we  have  estimated  at  125  per 
day  each  way,  and  which  at  two  cents  per  mile,  would  amount  to 
$399,076. 

The  lowest  price  now  charged  for  a through  ticket,  between  Cin- 
cinnati and  Chicago,  is  $9.  In  our  estimate  we  have  fixed  the  price 
at  $5.10. 

5.  Lateral  Passengers —-These  we  have  estimated  at  136,155, 
averaging  the  distance  they  will  be  carried  at  fifty  miles,  and  the 
price  at  two  and  a half  cents  per  mile,  and  we  have  $170,193. 

6.  Lateral  Freights. — V/e  have  estimated  the  freights  to  be  re- 
ceived from  lateral  roads,  which  will  be  crossed  at  81,380  tons  per 
year,  which  will  be  but  twenty  tons  per  day  for  each  road  crossed, 
and  estimating  but  fifty  miles  as  the  average  distance,  carried  at  two 
and  a half  cents  per  ton  per  mile,  and  we  have  as  the  result,  $101,- 
725. 

7.  Mails  and  Expresses,  $75,000. 


TABLE  OF  RECEIPTS  AND  PROFITS. 


Way  Freights $666,615 

Through  Freights 200,000 

Way  Passengers 795,168 

Through  Passengers 399,075 

Lateral  Passengers 170,193 

Lateral  Freights 101,725 

Mails  and  Expresses 75,000 


$2,397,776 

Deduct  for  working  expenses  45  per  cent 1,078,999 


Nett  Profits $1,318,777 


This  shows  a net  profit  of  over  ten  per  cent  on  a cost  of  $15,- 

000,000. 

In  this  review  of  the  elements  and  prospects  of  the  Cincinnati  and 
Chicago  Railroad,  three  important  facts  must  attract  attention. 

i.  That  it  connects  by  a direct  line,  Chicago  in  the  North-West, 


19 


and  Cincinnati  on  the  Ohio  river,  two  foci,  which  being  united,  ex- 
tend their  radii  to  all  points  in  the  North  and  South. 

2.  That  it  passes  through  a rich  country,  most  of  which  is  already 
populous  and  very  productive,  and  whose  resources  will  rapidly  and 
largely  increase  railway  traffic. 

3.  That  it  is  entirely  exempt  from  competition,  as  a line  connect- 
ing Cincinnati  and  Chicago,  and  must  command  the  business  between 
those  cities.  Being  a direct  North-West  line,  it  must  become  one  of 
the  great  radii  of  Cincinnati,  and  consequently  a trunk  line,  and 
stands  prominent  among  the  enterprises  most  strongly  to  be  com- 
mended, by  its  termini,  its  position,  the  section  of  country  it  com. 
mands,  and  all  its  prospective  advantages. 

By  order  of  the  Board, 

CALEB  B.  SMITH,  President. 

October,  1854. 


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